Ship Recycling Keeps Calm | Hellenic Shipping News Worldwide
QThe ship recycling market remained sluggish over the past week. In its latest weekly report, Best Oasis (www.best-oasis.com), one of the leading buyers of cash vessels said that “in India, the market remains sluggish, with little to no positive momentum. Activity levels are low, and overall sentiment remains weak amid persistent poor fundamentals. While the exchange rate has shown some improvement, this has not translated into a strengthening of vessel prices, which continue to stagnate. Some recyclers who had purchased vessels at lower recovery rates are now able to offer raw materials at lower selling prices, putting additional pressure on other companies operating at normal cost levels. In Bangladesh, “the market is getting weaker, and this downward trend may be more visible in prices in the coming weeks. Local second-hand prices remain at low levels, with very little movement seen across categories. Even though sentiment is weakening, buyer interest is still there, especially due to limited tonnage availability on the market. Buyers continue to show a stronger inclination towards tankers and bulk carriers, which remain their primary choice in the current environment.”
Source: Best Oasis
Best Oasis also notes that in Pakistan, “the market remains largely stagnant with a slightly negative mood as boat prices continue to decline. The full impact of this downward trend will probably be more visible in the coming weeks. Demand is very limited, with only two or three active buyers currently able to make purchases. Market participants are also keeping a close eye on the foreign exchange rate situation, which is expected to influence overall stability and buying interest in the days ahead. The Turkish market has shown a slight improvement this week, with local second-hand prices rising by around USD 3. Import levels remain stable, and Ship prices also recorded a slight increase. This marks a gradual strengthening in overall market sentiment after a period of relative calm,” the company said.
In a separate report this week, shipbroker Intermodal said that “the ship recycling market experienced a sluggish week, with activity limited by regional celebrations, mild steel market conditions, and ongoing concerns regarding the arrival of OFAC-registered candidates and low-cost steel imports weighing on sentiment. The Alang ship recycling market was quiet last week, impacted by the Diwali holiday and limited activity overall. Discounted “shadow fleet” ships continue to pressure prices, distort competition, and raise concerns over the double-decker market.
Source: Intermodal
In terms of compliance, the sector continues to make steady progress towards HKC standards, with 20 facilities now fully upgraded. Broader economic sentiment remains depressed by inflation, tariffs and a lack of infrastructure development undertaken by the interim regime, and elections in February are widely seen as a potential turning point for the country’s economic prospects. The ship recycling market in Pakistan has stalled as recyclers show limited interest in making new purchases. The sector is facing growing pressure from increasing imports of cheap steel and hot-rolled steel from Iran and China, which has weighed on domestic steel prices. This influx of cheap materials has eroded market confidence, prompting recyclers to adopt a cautious stance and refrain from new offerings amid concerns over declining inventory values and shrinking margins. The ship recycling market in Türkiye showed slight improvement, providing optimism for stable conditions. The availability of adequate tonnage candidates improves market sentiment, limiting the need for aggressive bidding. Meanwhile, the Turkish Lira continued to weaken over the next week,” concluded the shipbroker.
Nikos Roussanoglou, Worldwide Hellenic Shipping News
